MultiBank Group

The World's No.1 Financial Derivatives Broker

  1. Different coincidences, same behavior

    Throughout history, few instruments have matched Gold in its reputation as a safe-haven, whether it is inflationary issues, economic outbreaks, currency fluctuation, or geopolitical conflict. Safe-haven assets such as Gold are meant to diversify an investor’s portfolio and are crucial in times of market volatility. While such systemic risks in the market are inescapable, investors tend to run to safe-haven assets that are uncorrelated or negatively correlated to the overall market during times of instability.

    So, Let’s Talk Gold

    In 2008, when the global financial crisis struck, equity markets crashed, fixed income became one of the riskiest instruments to invest in—while Gold gained 57% from the year before.

    Three years later, the same scenario repeated in 2011. The world's largest central banks struggled to find the right recipe of interest rate and stimulus to control inflation levels. And then again, Gold bulls benefited from more than an 80% increase in Gold prices since 2008.

    The Global Pandemic

    A decade later, a virus that not only impacted our health but also the global economy. In 2020, countries all around the world enforced a lockdown: companies shut down, unemployment rates increased severely, prices went rocket high, trading cycle disrupted, and energy cost became a burden. Yet, Gold continued to shine. Prices increased by 33% from the previous year's high to a new all-time high at $2,089 in August 2020.

    Will The Golden Cycle Continue?

    Although past performance is not necessarily indicative of future results. Gold has continued to shine during all the global economic turmoil in 2008, 2011, and 2020.

    Therefore, should we consider Gold to continue its rise, and hit an all-time high, and sustain those levels or is it doomed for a severe correction when central banks start their corrective action?

    Take the opportunity and start trading Gold with tightest spreads in the industry from only $0.07 with MultiBank Group thumbnail.png
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